The European Council announced that a consensus was reached on the regulation, which was negotiated between the member states and the European Parliament (EP) and which included the establishment of a commercial retaliation mechanism called the “pressure prevention instrument” against the economic pressures of third countries.
Accordingly, the EU and its member states will be protected against the economic pressures of third countries.
Foreign countries that implement or threaten to implement measures affecting the trade or investments of EU countries will be intervened.
Measures that could be applied to third countries in retaliation for economic coercion would include various trade restrictions, such as raising customs duties, imposing import or export licenses, and limiting services or public procurement.
The mechanism will deter third countries from putting commercial pressure on the EU.
Member states will decide which behaviors constitute economic coercion. The European Commission will be responsible for the implementation of decisions on intervention measures.
Currently, the EU does not have a legal framework to intervene against economic coercion.
After this stage, the official approval of the EP and member states is required for the mechanism protecting commercial priorities to come into effect.
It is envisaged that the mechanism in question can be used against countries such as China, which are alleged to impose economic impositions.